CMA Final · Cost and Management Audit · Audit of Different Service Organisations
In auditing a hospital as a service organisation, which of the following is the most appropriate cost driver to use when assigning the cost of nursing services to patients?
Patient-days or bed-days occupied is the most appropriate driver, because nursing workload and cost rise with the number of days patients stay in beds. The other options do not measure the consumption of nursing services by patients.
- ANumber of doctors employed
- BPatient-days (bed-days) occupiedCorrect
- CTotal pharmacy purchases
- DFloor area of the administrative block
Explanation
Nursing effort varies with the number of days patients occupy beds, so patient-days is the standard cost unit and driver. Doctor headcount, pharmacy purchases and admin floor area do not reflect nursing consumption.
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